Beginning balances of Express Lane Company’s accounts as of
January 1, 2017 as given below:
|
Beg Balance
|
Account Title
|
Debit
|
Credit
|
Cash
|
242,600
|
|
Accounts Receivable
|
24,800
|
|
Supplies
|
13,000
|
|
Prepaid Insurance
|
0
|
|
Inventory
|
18,000
|
|
Equipment
|
46,000
|
|
Accumulated Depreciation-Equipment
|
|
20,000
|
Accounts Payable
|
|
42,500
|
Salary Payable
|
|
16,000
|
Unearned Sales Revenue
|
|
15,000
|
Capital
|
|
250,900
|
Withdrawals
|
0
|
|
Sales Revenue
|
|
|
Sales Returns& Allowances
|
|
|
Sales Discounts
|
|
|
Cost of Goods Sold
|
|
|
Insurance Expense
|
|
|
Depreciation Expense-Equipment
|
|
|
Supplies Expense
|
|
|
Salary Expense
|
|
|
Total
|
344,400
|
344,400
|
During January 2017, Express Lane Company completed the
following transactions:
- Jan 1: Paid 12 months insurance in advance for $10,800.
- Jan 2: Purchased 400 units of inventory for 34,000$ from Great
Company, on terms, 3/10, n/eom.
- Jan 4: Purchased 150 units of inventory from Deluxe Company on
account with terms 2/5, n/30. Total invoice is $13,500 which
includes also freight charges.
- Jan 5: Paid accrued salary of the December 2016, $16,000.
- Jan 13: Paid to Great Company.
- Jan 15: Sold 600 units of goods to Shine Company for $90,000
($150 each) on account with terms 2/10, n/30.
- Jan 17: Received 50 units of goods back from Shine Company
(Returned goods are from $80 of cost each).
- Jan 20: Received payment from Shine Company, settling the
amount due in full.
- Jan 23: Sold 40 units on account, $6,000 ($150 each) for cash
to Bridget Company.
- Jan 26: Owner withdrew cash of 18,000$
- Jan 27: Purchased supplies for cash of $7,000.
On January 31, 2017 Express Lane Company completed following
adjusting entries:
- Expiration of prepaid insurance for one month
- Depreciation of equipment for the month, $4,500
- Supplies on hand, $12,000
- Unearned sales revenue earned is, $12,000.
- Accrued salary of the January 2017 is $16,000 which will be
paid on the 5th of February.
Requirements:
- Journalize and post the January transactions. (Open T-accounts
for each of the accounts given in trial balance, do not forget to
write beginning balances) (2 points each)
- Prepare LIFO schedule to calculate
the Cost of Goods Sold (COGS) on the Jan 15th, and
23th. (Beginning inventory as of January 1 include 225
units $80 each which totals $18,000 as given) (17 points)
- Prepare unadjusted trial balance as of January 31, 2017. (10
points)
- Journalize and post the adjusting entries. (3 points each)
- Prepare adjusted trial balance as of January 31, 2017. (10
points)